Lesson 14 - Condominiums and Cooperative

Question 1

Share in a Cooperative Unit

Answer 1

• Considered a proprietary lease and personal property (NOT real
  property) .

Question 2

The Offering Plan

Answer 2

-A key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser.

Question 3

Board Package

Answer 3

• If a prospective buyer is looking to purchase a unit in a cooperative, the Board of Directors will most likely want the buyer to submit a board package.
• The board package includes mostly financial documents.

Question 4

By-Laws

Answer 4

• The owner’s rights and obligations for a condominium.

- Remember: House rules are associated with cooperatives, while by-laws are associated with condominiums.

Question 5

House Rules

Answer 5

-Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, pets, and conflict resolution.

Question 6

Condominium

Answer 6

• Considered real property, which is conveyed by a deed.
• Condominiums are considered freehold estates.
• For tax purposes, a condominium is classified as a residence.

Question 7

Maintenance

Answer 7

-Monthly payments by a shareholder to a cooperative corporation.

Question 8

Common Charges

Answer 8

-Monthly payment by an owner of a condominium

Question 9

Sponsor (co-op/condo)

Answer 9

-The developer or owner organizing and offering for sale a condominium or cooperative development.

Question 10

Condop

Answer 10

-A condop is a building that includes condominium and cooperative ownership in the same structure.
In other words, the building is part condo, part co-op.

Question 11

Board of Directors

Answer 11

• The Board of Directors manages a cooperative.

- The Board oversees the maintenance, finances, and policy decisions of the cooperative.

Question 12

House Rules

Answer 12

• ​Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, and conflict resolution.
• House rules are generally more detailed than items in the proprietary lease and deal with the day-to-day behavior of tenants and general operations.
• Remember: House rules are associated with cooperatives, while by-laws are associated with condominiums.

Question 13

What might by-laws include?

Answer 13

• The powers and duties of the Board of Managers
• Sublet provisions
• Restrictions on the use of units and common spaces
• Pet restrictions

Question 14

Right of First Refusal

Answer 14

-​Condominium contracts typically contain a ‘Right of First Refusal’ clause. The clause allows the condominium association the first opportunity to purchase the condominium when it goes up for sale.

Question 15

CPS-1

Answer 15

• CPS-1 stands for Cooperative Policy Statement. It is used by real estate developers to test the market before building a condominium or cooperative building.
• The CPS-1 must be filed with the Attorney General.
• The CPS-1 statement includes rules on how the development may be advertised. The developer cannot declare a firm price.
• The CPS-1 period lasts 120 days from the date of acceptance of the CPS-1 statement by the Attorney General, but can extend up to an additional 60 days.